nep-afr New Economics Papers
on Africa
Issue of 2016‒11‒06
six papers chosen by
Sam Sarpong
The University of Mines and Technology

  1. India’s Trade Partnership with East African Community: Exploratory Results from Trade Indices By Chakraborty, Debashis; Sahu, Manoj
  2. Does Crime Deter South Africans from Self-Employment? By Grabrucker, Katharina; Grimm, Michael
  3. Balance of payments and policies that affects its positioning in Nigeria By Azubike, Anulika
  4. Start-Up Capital and Women's Entrepreneurship: Evidence from Swaziland By Brixiova, Zuzana; Kangoye, Thierry
  5. Effects of Adult Health Interventions at Scale on Children's Schooling: Evidence from Antiretroviral Therapy in Zambia By Adrienne M. Lucas; Margaret Chidothe; Nicholas L. Wilson
  6. The ICC Burexit: free at last? Burundi on its way out of the Rome Statute By Vandeginste, Stef

  1. By: Chakraborty, Debashis; Sahu, Manoj
    Abstract: Since the initiation of economic reforms in 1991, India adopted an outward-oriented strategy for development. After inception of World Trade Organization (WTO) in 1995, the country initially relied on multilateral trade reforms for export growth, but slow progress of the Doha Round negotiations over the last decade caused it to explore the regional trade agreements (RTAs) route as well from 2003-04 onwards. While in the initial period India focused on deeper trade relationship with Asian partners, namely, Association of Southeast Asian Nations (ASEAN), Japan, South Korea etc. as preferential trade allies, the perceived need to diversify the export markets has led the country to focus on potential trade partners in Africa, Europe, North and Latin America as well in recent times. On the other hand, the economies of East Africa are also embracing the RTA route for their trade promotion and the growing Indian market offers an opportunity for them as well. The present analysis attempts to understand the trade potential between the five East African Community (EAC) countries and India in the sphere of merchandise and services trade by looking through various trade indices. The empirical results indicate that bilateral trade between the two regions have a strong potential, which can be aided further through policy reforms at both ends.
    Keywords: Trade Policy, International Trade Organizations, Economic Integration, India, East Africa
    JEL: F15 F19
    Date: 2016–10–29
  2. By: Grabrucker, Katharina (University of Passau); Grimm, Michael (University of Passau)
    Abstract: An often-heard argument is that South Africa's very high crime rate is the main reason for the country's small share of business ownership. Combining a fixed-effects model with an instrumental variable approach, we estimate the effect of crime on self-employment and business performance using a matched data set of census, survey and police data. In contrast to previous studies, which focus on perceived rather than actual crime and often deal with geographically limited areas, we do not find robust evidence that high crime rates have a negative impact on self-employment. Although the impact of crime is statistically significant and negative, it is economically small. Moreover, our results suggest a positive rather than a negative relationship between robbery and burglary and sales and average business profits. These results suggest that crime may not be in general a serious threat for small businesses in low and middle-income countries.
    Keywords: crime, self-employment, microenterprises, South Africa, informal sector
    JEL: D22 J24 J46 K40 L26 O12
    Date: 2016–10
  3. By: Azubike, Anulika
    Abstract: This study examines balance of payments (BOP) and policies that affects its position in Nigerian economy. The tariff, non- tariff and exchange rate policies were used as policies that affects the BOP. Various Proxies were used to explain the effect of these policies on the BOP. These includes; the indirect tax as a proxy for tariff policies, the money supply, export and interest rate as a proxy for non- tariff policies, and the exchange rate. This study employs the ordinary least square (OLS) methods of estimation and the heteroscedasticity and autocorrelation covariance (HAC) in order to avoid spurious regression results. The E-views 6.0 was employed in the regression analysis. In executing this study, the ADF (augumented dickey fuller) test and the Unit Root Test was carried out to test the stationarity of the variables. The result shows that the indirect tax, export and exchange rate satisfy the economic apriori expectation while the interest rate and money supply negates the apriori expectation. Using the t-test, it is revealed that only three (3) variables are significant in the explanation of the dependent variable (BOP) while the remaining two variables are insignificant. Recommendations are made to ensure that the balance of payments disequilibrium is resolved.
    Keywords: Balance of payments, Tariff and Non-tariff Policies, Exchange Rate POlicies
    JEL: F18
    Date: 2016–11–01
  4. By: Brixiova, Zuzana (University of Cape Town); Kangoye, Thierry (African Development Bank)
    Abstract: This paper examines gender differences in entrepreneurial performance and their links with start-up capital utilizing a search model and empirical analysis of survey of entrepreneurs from Swaziland. The results show that entrepreneurs of both genders with higher start-up capital record better sales performance than those with smaller amounts of capital. For women entrepreneurs, formal finance sources of start-up capital are also associated with higher sales. However, as in other developing countries, women entrepreneurs in Swaziland have smaller start-up capital and are less likely to fund it from formal sources than men. Among women entrepreneurs, those with college education and confident in their skills tend to start their firms with higher amounts of capital. Professional support also matters, as women with such support are more likely to fund their start-up capital from the formal financial sector.
    Keywords: women's entrepreneurship, start-up capital, search model, multivariate analysis
    JEL: L53 O12 C61
    Date: 2016–10
  5. By: Adrienne M. Lucas; Margaret Chidothe; Nicholas L. Wilson
    Abstract: In 2007, approximately one in five children in Zambia lived with an HIV positive adult. We identify the effect of adult antiretroviral therapy (ART) availability at scale on children's educational outcomes by combining data on the expansion of ART availability with two national household surveys that include HIV testing. Through a triple difference specification, we find that the availability of ART increased the likelihood that children in households with HIV positive household heads started school on time and were the appropriate grade-for-age. The mechanisms were likely decreased opportunistic infections in the household and related care giving duties.
    JEL: I15 I18 J13 O15 O18
    Date: 2016–10
  6. By: Vandeginste, Stef
    Abstract: On 12 October 2016, parliament endorsed the Burundian government’s decision to withdraw from the Rome Statute on the International Criminal Court (ICC).1 The withdrawal is not final until a written notification is addressed to the UN Secretary-General, and, in accordance with article 127 of the Rome Statute, it shall take effect one year later. It is likely that Burundi will soon make history as the first state ever to withdraw from the Rome Statute. This brief is an attempt at understanding what might explain and motivate this withdrawal. After a short look at the historical context of Burundi’s ratification and withdrawal, attention is paid to the costs and benefits of what, presumably, is a rational decision and not – as has been suggested by some observers – a panic-driven reaction.
    Keywords: Burundi; International Criminal Court
    Date: 2016–10

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